SAN DIEGO, Nov. 19 /PRNewswire-FirstCall/ -- Protein Polymer Technologies,
Inc. (OTC Bulletin Board: PPTI), announced today financial results for the
third quarter and the nine months ended September 30, 2004.
The net loss for the quarter ended September 30, 2004 was $1,042,000
($0.03 per share), compared to a net loss of $912,000 ($0.02 per share), for
the same period in 2003. The net loss for the nine months ended September 30,
2004 was $2,819,000 ($0.07 per share), compared to a net loss of $3,092,000
($0.09 per share), for the nine months ended September 30, 2003. The net loss
and the net loss per share amounts for both the 2003 and 2004 periods include
accumulated dividends related to the Company's preferred stock, and "imputed
dividend" charges pertaining to its sale of Series I Convertible Preferred
Stock during the second quarter of 2003.
Total revenue was $20,000 for the quarter ended September 30, 2004,
compared to $101,000 for the same period in 2003. Total revenue was $411,000
for the nine months ended September 30, 2004, compared to $1,306,000 for the
same period in 2003. The contract and licensing revenue primarily represents
research and development payments and receivables from Spine Wave, Inc. for
the development of an injectable spinal disc repair product for the treatment
of lower back pain. The decrease in contract revenue in 2004, particularly
during the three months ended September 30, 2004 as compared to the same
period in 2003, is due to the completion of the majority of work, including
preclinical testing, required to support Spine Wave's recently initiated human
clinical testing of the injectable spinal disc nucleus product.
Operating expenses for the quarter were $991,000, as compared to $943,000
for the same period in 2003, and $3,023,000 for the nine months ended
September 30, 2004 as compared to $2,816,000 for the nine months ended
September 30, 2003. When additional capital becomes available, expenses are
expected to rise in subsequent quarters due to the increased expenditures for
expanded human clinical testing and patient follow-up of the Company's lead
product candidates currently in development.
As of September 30, 2004, PPTI had a negative working capital of
$1,168,000 compared to $1,192,000 as of December 31, 2003. PPTI's cash as of
September 30, 2004 was $177,000, compared to $1,085,000 on December 31, 2003.
Since the end of June, the Company has received $900,000 in cash and cash
commitments in return for short term promissory notes and warrants. In
combination with anticipated additional contract and license payments, and
revenue projected for the delivery of clinical testing materials, the
Company's cash as of November 13, 2004 is expected to meet the Company's
anticipated capital requirements until December 2004.
"We are currently in discussions with potential sources of additional
equity and convertible debt funding, although there can be no assurance that
these discussions will result in additional funding," said J. Thomas Parmeter,
Chairman and Chief Executive Officer of Protein Polymer Technologies.
"Substantial additional capital resources will be required to fund future
expenditures related to our research, development, clinical trials, and
product marketing activities. If adequate funds are not available, we will be
required to significantly curtail our operating plans and may have to sell or
license out significant portions of our technology or potential products, or
cease operations."
"Conversely, if we resolve our liquidity problems," Dr. Parmeter commented
further, "I view PPTI's future optimistically. With the appointment earlier
this year of Dr. Donald Kaplan as President and Chief Operating Officer, we
are aggressively pursuing new ways to capitalize on our large intellectual
property portfolio, and to identify products we can acquire to support revenue
growth in 2005. Dr. Kaplan, previously Senior Vice President, Operations and
Technology at U.S. Surgical Corporation and a recognized leader in research,
development and commercialization of surgery and wound closure devices, is
uniquely qualified to lead this effort. For example, we are leveraging the
development of our adhesives technology for the injectable spinal disc repair
product towards application as high strength surgical sealants. Such sealants
are designed to stop air and fluid leaks associated with the use of sutures
and staples in a variety of surgical procedures. In addition, we continue to
focus on the clinical trials of our urethral bulking agent for treatment of
female stress urinary incontinence and our injectable hydrogel for treatment
of dermal contour defects such as scars, wrinkles and lines. Finally, with
Spine Wave beginning clinical trials of the injectable disc nucleus product
(IDN) for the treatment of lower back pain, we are involved in discussions
with Spine Wave regarding the commercial manufacture of the IDN product."
Protein Polymer Technologies, Inc., is a San Diego-based company focused
on developing bioactive products to improve medical and surgical outcomes.
From its inception in 1988, PPTI has been a pioneer in protein design and
synthesis, developing an extensive portfolio of proprietary biomaterials.
These genetically engineered biomaterials are high molecular weight proteins,
processed into products with physical and biological characteristics tailored
to specific clinical performance requirements. Targeted products include
urethral bulking agents for the treatment of stress urinary incontinence,
dermal augmentation products for cosmetic and reconstructive surgery, surgical
adhesives and sealants, scaffolds for wound healing and tissue engineering,
and depots for local drug delivery. To date, PPTI has been issued twenty-five
U.S. Patents on its core technology with corresponding issued and pending
patents in key international markets.
This press release contains forward-looking statements that are based on
management's views and expectations. Actual results could differ materially
from those expressed here; further, the Company is not obligated to comment
specifically on those differences. Risks associated with the Company's
activities include raising adequate capital to continue operations scientific
and product development uncertainties, competitive products and approaches,
continuing collaborative partnership interest and funding, regulatory testing
and approvals, and manufacturing scale up. The reader is encouraged to refer
to the Company's 2003 Annual Report Form 10-KSB, and other recent filings with
the Securities and Exchange Commission, copies of which are available from the
Company, to further ascertain the risks associated with the above statements.
(Financial Data Follows)
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Three months ended Nine months ended
September 30, September 30,
2004 2003 2004 2003
SUMMARY OF OPERATIONS
Contract revenue $19,523 $95,796 $407,939 $1,289,475
Interest income 273 5,378 3,098 16,224
Product and other income 0 0 6 0
Total revenues 19,796 101,174 411,043 1,305,699
Total expenses 991,388 942,721 3,022,589 2,816,499
Net loss $(971,592) $(841,547) $(2,611,546) $(1,510,800)
Undeclared and/or
paid dividends on
Preferred Stock 69,980 69,980 207,659 1,580,906
Net loss
applicable to
common
shareholders $(1,041,572) $(911,527) $(2,819,205) $(3,091,706)
Net loss per
common share -
basic and diluted $(0.03) $(0.02) $(0.07) $(0.09)
Shares used in
computing net loss
per share -
basic and diluted 38,113,618 36,720,701 37,840,496 33,542,290
As of As of
Sept. 30, 2004 Dec. 31, 2003
BALANCE SHEET INFORMATION
Cash and cash equivalents $177,000 $1,085,000
Working capital (1,168,000) 1,192,000
Total assets 506,000 1,692,000
Total capital invested 49,159,000 48,809,000
Accumulated deficit$ (50,085,000) $(47,473,000)
SOURCE Protein Polymer Technologies, Inc.
 back to top
CONTACT:
J. Thomas Parmeter, Chairman,
+1-858-558-6064, jtp@ppti.com, or Janis Y. Neves, Director of
Finance, +1-858-558-6064, jneves@ppti.com
|
